Brent was headed for its first weekly decline in five weeks and WTI for its first decline in eight weeks, as concerns mount that interest rate hikes could cause a recession.
Those fears sent U.S. fuel futures down more than 7%, with analysts fearing high prices will begin to weigh on demand for the fuel.
Automobile group AAA said the price of diesel at the pump hit a record $5,798 a gallon on Friday, while the value of gasoline hit a record high of $5,016 this week.
“The Federal Reserve and the European Central Bank have enough credibility to engineer a reduction in inflation without causing a deep recession like the last time the US central bank fought such a rapid rise in prices,” said the Fed chairman. of St.Louis, James Bullard.
But since the Fed is expected to keep raising interest rates, Open interest in WTI futures on the New York Mercantile Exchange fell to its lowest level since May 2016 on Thursday.as investors reduced holdings of risky assets such as commodities.
Source: Ambito
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